Citigroup Wants Extended Freeze on Mistaken Revlon Payments




  • In Business
  • 2021-02-23 18:22:14Z
  • By Bloomberg
 

(Bloomberg) -- Citigroup Inc. will seek to extend a court order freezing more than $500 million the bank accidentally sent to Revlon Inc. creditors last summer while it challenges a ruling that it can't recover the funds.

In a court filing Tuesday, the bank told U.S. District Court Judge Jesse Furman that it will ask him to issue an injunction putting a hold on the funds while it appeals his refusal to force a group of Revlon creditors to return the money.

Read More: Citi Loses Bid to Recoup Massive Mistake in Surprise Ruling

Furman last week rejected the bank's attempt to recover $504 million it accidentally sent to asset managers for Revlon lenders. They include Brigade Capital Management, HPS Investment Partners and Symphony Asset Management.

The lenders -- some of whom were locked in a bitter restructuring battle with Revlon when they received the payments -- oppose Citigroup's request to extend the judge's orders freezing the funds.

The current freeze remains in effect pending the outcome of Citi's motion.

The case is In re Citibank August 11, 2020 Wire Transfers, 20-cv-6539, U.S. District Court, Southern District of New York (Manhattan).

(Updates with freeze remaining in effect pending outcome of motion)

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